10C. Special provision
in respect of certain industrial undertakings in North-Eastern
Region.- (1) Subject to the provisions of this section,
any profits and gains derived by an assessee from an industrial
undertaking, which has begun or begins to manufacture or produce
any article or thing on or after the 1st day of April, 1998
in any Integrated Infrastructure Development Centre or Industrial
Growth Centre located in the North-Eastern Region (hereafter
in this section referred to as the industrial undertaking)
shall not be included in the total income of the assessee.
(2) This section applies to any industrial undertaking which
fulfils all the following conditions, namely :—
(i) it is not formed by the splitting up, or the reconstruction
of, a business already in existence :
Provided that this condition shall not apply in respect
of any industrial undertaking which is formed as a result
of the re-establishment, reconstruction or revival by the
assessee of the business of any such industrial undertaking
as is referred to in section 33B, in the circumstances and
within the period specified in that section ;
(ii) it is not formed by the transfer to a new business
of machinery or plant previously used for any purpose.
Explanation.—The provisions of Explanation 1 and Explanation
2 to sub-section (3) of section 80-IA shall apply for the
purposes of clause (ii) of this sub-section as they apply
for the purposes of clause (ii) of that sub-section.
(3) The profits and gains referred to in sub-section (1)
shall not be included in the total income of the assessee
in respect of ten consecutive assessment years beginning with
the assessment year relevant to the previous year in which
the industrial undertaking begins to manufacture or produce
articles or things.
(4) Notwithstanding anything contained in any other provision
of this Act, in computing the total income of the assessee
of any previous year relevant to any subsequent assessment
year,—
(i) section 32, section 35 and clause (ix) of sub-section
(1) of section 36 shall apply as if deduction referred to
therein and relating to or allowable for any of the relevant
assessment years, in relation to any building, machinery,
plant or furniture used for the purposes of the business of
the industrial undertaking in the previous year relevant to
such assessment year or any expenditure incurred for the purposes
of such business in such previous year had been given full
effect to for that assessment year itself and, accordingly,
sub-section (2) of section 32, sub-section (4) of section
35 or the second proviso to clause (ix) of sub-section (1)
of section 36, as the case may be, shall not apply in relation
to any such deduction;
(ii) no loss referred to in sub-section (1) of section 72
or sub-section (1) or sub-section (3) of section 74, in so
far as such loss relates to the business of the industrial
undertaking, shall be carried forward or set off where such
loss relates to any of the relevant assessment years;
(iii) no deduction shall be allowed under section 80HH or
section 80HHA or section 80-I or section 80-IA or section
80-IB or section 80JJA in relation to the profits and gains
of the industrial undertakings; and
(iv) in computing the depreciation allowance under section
32, the written down value of any asset used for the purposes
of the business of the industrial undertaking shall be computed
as if the assessee had claimed and been actually allowed the
deduction in respect of depreciation for each of the relevant
assessment years.
(5) The provisions of sub-section (8) and sub-section (10)
of section 80-IA shall, so far as may be, apply in relation
to the industrial undertaking referred to in this section
as they apply for the purposes of the industrial undertaking
referred to in section 80-IA or section 80-IB, as the case
may be.
(6) Notwithstanding anything contained in the foregoing provisions
of this section, where the assessee before the due date for
furnishing the return of his income under sub-section (1)
of section 139, furnishes to the Assessing Officer a declaration
in writing that the provisions of this section may not be
made applicable to him, the provisions of this section shall
not apply to him in any of the relevant assessment years :
Provided that no deduction under this section shall be allowed
to any undertaking for the assessment year beginning on the
1st day of April, 2004 and subsequent years.
Explanation.—For the purposes of this section,—
(i) “Integrated Infrastructure Development Centre”
means such centres located in the States of the North-Eastern
Region, which the Central Government, may, by notification
in the Official Gazette, specify for the purposes of this
section;
(ii) “Industrial Growth Centre” means such centres
located in the States of the North-Eastern Region, which the
Central Government may, by notification in the Official Gazette,
specify for the purposes of this section;
(iii) “North-Eastern Region” means the region
comprising the States of Arunachal Pradesh, Assam, Manipur,
Meghalaya, Mizoram, Nagaland, Sikkim and Tripura;
(iv) “relevant assessment years” means the ten
consecutive years beginning with the year in which the industrial
undertaking begins to manufacture or produce articles or things.
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